The legal nature of assigning a construction contract

Abstract

Abstract: Multiple opinions have emerged in jurisprudence regarding the legal nature of the assignment of a construction contract. Some have considered that the assignment of such a contract amounts merely to an assignment of rights and an assignment of obligations. In contrast, another opinion holds that the assignment cannot be fragmented; rather, it constitutes a single legal operation that transfers the contractual position as a whole. In light of this divergence, most legal systems have not recognized the unity of the contract upon its transfer, due to the absence of specific regulation. Nonetheless, it appears that the view favoring the unity of the assignment—despite criticisms—is more compelling, as transferring the contract or the contractual position in its entirety preserves the contractual relationships and their effects, whereas fragmenting the contract into rights and obligations hinders the transfer of licensing rights.